Leisure & Wellbeing Portfolio
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Information relating to the financial or business affairs of any particular person (including the authority holding that information)
To consider report HPS/044 of the Head of Major Projects and Commericial Services, which was referred to the meeting of the Overview and Scrutiny Commission on 4 November 2024.
Decision:
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Information relating to the financial or business affairs of any particular person (including the authority holding that information)
RESOLVED
That the Cabinet:
1) approves entering into a contract extension with Parkwood Theatres from 1February 2026 for a term of five years with the option to extend for a further five years under the terms set out in paragraphs 6.19 – 6.21 of report HPS/044.
2) authorises the Head of Corporate Finance, Head of Governance and Head of Major Projects and Commercial Services to enter into a contract variation based upon the terms set out in paragraphs 6.19 - 6.21 of report HPS/044.
Reasons for the Recommendations
a) The option to extend the contract with Parkwood Theatres enables the Hawth to continue as a valuable and valued service for Crawley residents. Nearly half of the visits to the Hawth are from Crawley residents and the venue offers a wider economic benefit from a variety of sources. The Hawth has also significantly grown its community and participation programmes and this option enables these to continue.
b) The extension significantly reduces the revenue cost to the Council of running the Hawth. Although an improved offer could be achieved through a competitive process, an assessment from specialist consultants indicates that, given the venue size, the offer from Parkwood is at or indeed above market expectations. There is also a risk that market conditions may not be as positive when bids would be invited (in approximately 12 months) and competition is limited as a result.
c) The extension secures a significant saving on the 2025/26 revenue budget. This option is the only viable means of achieving this within the current contract period. This option continues to provide risk transfer for the Council and protects from potentially volatile market conditions and cost volatility as experienced with energy costs in recent years.
d) The option to extend the contract secures a significantly improved revenue position while balancing the capacity and resourcing requirements for the Council. A competitive tender would be a significant resource undertaking and the negotiated option is less impactful enabling resources to be applied to other priority projects.
Minutes:
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Information relating to the financial or business affairs of any particular person (including the authority holding that information)
The Cabinet considered report HPS/044 of the Head of Major Projects and Commercial Services, which sought approval of the preferred delivery model for the Hawth Theatre following an options appraisal and tender process, to ensure the Hawth continues to provide valued local services while supporting the Council’s wider budget requirements.The Cabinet Member for Leisure & Wellbeing introduced the report with the Head of Major Projects and Commercial Services then providing the Cabinet with some technical detail on the options before them.
Councillor Ayling presented the Overview and Scrutiny Commission’s comments on the report to the Cabinet following consideration of the matter at its meeting on 4 November 2024.
Councillor Crow was invited to speak on the item and showed his support for the proposals contained within the report.
Councillors Irvine, S Mullins and Jones spoke as part of the discussion on the report.
RESOLVED
That the Cabinet:
1) approves entering into a contract extension with Parkwood Theatres from 1st February 2026 for a term of five years with the option to extend for a further five years under the terms set out in paragraphs 6.19 – 6.21 of report HPS/044.
2) authorises the Head of Corporate Finance, Head of Governance and Head of Major Projects and Commercial Services to enter into a contract variation based upon the terms set out in paragraphs 6.19 - 6.21 of report HPS/044.
Reasons for the Recommendations
a) The option to extend the contract with Parkwood Theatres enables the Hawth to continue as a valuable and valued service for Crawley residents. Nearly half of the visits to the Hawth are from Crawley residents and the venue offers a wider economic benefit from a variety of sources. The Hawth has also significantly grown its community and participation programmes and this option enables these to continue.
b) The extension significantly reduces the revenue cost to the Council of running the Hawth. Although an improved offer could be achieved through a competitive process, an assessment from specialist consultants indicates that, given the venue size, the offer from Parkwood is at or indeed above market expectations. There is also a risk that market conditions may not be as positive when bids would be invited (in approximately 12 months) and competition is limited as a result.
c) The extension secures a significant saving on the 2025/26 revenue budget. This option is the only viable means of achieving this within the current contract period. This option continues to provide risk transfer for the Council and protects from potentially volatile market conditions and cost volatility as experienced with energy costs in recent years.
d) The option to extend the contract secures a significantly improved revenue position while balancing the capacity and resourcing requirements for the Council. A competitive tender would be a significant resource undertaking and the negotiated option is less impactful enabling resources to be applied to other priority projects.
Supporting documents: